Written answers

Wednesday, 8 May 2013

Department of Agriculture, Food and the Marine

Coillte Teoranta Harvesting Rights Sale

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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195. To ask the Minister for Agriculture, Food and the Marine if he has studied the international experience of privatisation of public forests, particularly in New Zealand and the brief experiment in Sweden, in his consideration of the sale of the harvesting rights of Coillte; and if he will make a statement on the matter. [21882/13]

Photo of Finian McGrathFinian McGrath (Dublin North Central, Independent)
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196. To ask the Minister for Agriculture, Food and the Marine if he has studied the international experience of privatisation of public forests, particularly in New Zealand and the brief experiment in Sweden, in his consideration of the sale of the harvesting rights of Coillte; and if he will make a statement on the matter. [21883/13]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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I propose to take Questions Nos. 195 and 196 together.

Further to the Government's decision that a concession for the harvesting rights to Coillte's forests be considered for sale, NewERA, Coillte, the Department of Public Expenditure and Reform and my Department have worked to examine the financial and other implications of a potential transaction. As part of that process, similar international transactions and precedents were considered in detail to identify issues that arose in those transactions and to learn from those precedents. In-depth comparative analysis is essential here as different ownership structures or marketing conditions may apply in those countries. The precedents examined included those in Australia and New Zealand.

As the Deputies may recall, the outcome of the debate on the proposed sale of Coillte harvesting rights was that the Dáil acknowledged from evidence gathered from similar transactions completed in other jurisdictions that a transaction can be structured in such a manner as to include provision for the maintenance of the Open Forest Policy reflecting public access to recreational land, the continuation of the existing replanting obligations, and the incorporation of biodiversity requirements, and the Dáil also noted that it is the Government's intention that similar appropriate provisions will be included in any sale of Coillte harvesting rights.

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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197. To ask the Minister for Agriculture, Food and the Marine his views on whether the sale of the harvesting rights of Coillte is unlikely; and if he will make a statement on the matter. [21884/13]

Photo of Finian McGrathFinian McGrath (Dublin North Central, Independent)
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198. To ask the Minister for Agriculture, Food and the Marine his views on whether the sale of the harvesting rights of Coillte is unlikely; and if he will make a statement on the matter. [21885/13]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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I propose to take Questions Nos. 197 and 198 together.

The current position in relation to the Government’s decision that a concession for the harvesting rights to Coillte’s forests be considered for sale is that substantial work has been undertaken on the identification of the forestry assets involved, the determination of their value and the consideration of a number of issues associated with the proposed sale of the harvesting rights. As part of the process, a number of detailed financial, technical and other specialist reports were prepared for Coillte, by external specialist consultancy bodies, in full consultation with the Board of Coillte and its executive management. The consideration of those reports is ongoing.

As part of the overall analysis, good practice would dictate the need to assess various scenarios and conditions for the sales process. This process is a very complex one and, while the consideration process is at an advanced stage, I wish to stress that no decision has been taken, as yet. As indicated by the Taoiseach, the analysis is ongoing with its outcome to be considered by the Government collectively upon its completion.

Photo of John HalliganJohn Halligan (Waterford, Independent)
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199. To ask the Minister for Agriculture, Food and the Marine if he will provide an update and progress report of his Department's considerations in relation to the possible sale of the harvesting rights of Coillte; and if he will make a statement on the matter. [21886/13]

Photo of Thomas PringleThomas Pringle (Donegal South West, Independent)
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200. To ask the Minister for Agriculture, Food and the Marine if he will provide an update and progress report of his Department's considerations in relation to the possible sale of the harvesting rights of Coillte; and if he will make a statement on the matter. [21887/13]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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I propose to take Questions Nos. 199 and 200 together.

Further to the Government's decision that a concession for the harvesting rights to Coillte's forests be considered for sale, NewERA, Coillte, the Department of Public Expenditure and Reform and my Department have worked to examine the financial and other implications of a potential transaction. Substantial work has been undertaken on the identification of the forestry assets involved, the determination of their value and the consideration of a number of issues associated with the proposed sale of the harvesting rights.

As part of the consideration process outlined above, the Coillte State Assets Steering Group, on which my Department is represented, also met with representatives of the Coillte Unions and the Irish Timber Council, in January and March respectively, to discuss the concerns of those groups regarding the proposed sale of Coillte harvesting rights.

NewERA, the Department of Public Expenditure and Reform and my Department are currently considering the report by Peter Bacon and Associates, commissioned by IMPACT, containing an “Assessment of the Consequences of the proposed Sale of Coillte's Timber Harvesting Rights - 10 January 2013”. The report by EPS Consulting for the Irish Timber Council, “The impacts on the sawmill sector arising from the proposed sale of Coillte's harvesting rights ”, is also being considered as part of the analysis. The Government is fully conscious of the concerns that have been raised in relation to the Coillte sale proposal. The outcome of the overall analysis, which is ongoing, will be considered by the Government upon its conclusion with no decision to be taken on Coillte until it is discussed at Cabinet.

Photo of John HalliganJohn Halligan (Waterford, Independent)
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201. To ask the Minister for Agriculture, Food and the Marine the way he intends to maintain a sustainable forest strategy in the event that the sale of the havesting rights of Coillte goes ahead; and if he will make a statement on the matter. [21888/13]

Photo of Thomas PringleThomas Pringle (Donegal South West, Independent)
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202. To ask the Minister for Agriculture, Food and the Marine the way he intends to maintain a sustainable forest strategy in the event that the sale of the havesting rights of Coillte goes ahead; and if he will make a statement on the matter. [21889/13]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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I propose to take Questions Nos. 201 and 202 together.

I wish to stress that it is a concession for the harvesting rights which is being considered for sale. In order to preserve the forest estate, my Department’s long-standing policy is that replanting should take place following harvesting apart from exceptional circumstances. The replanting obligation is one of the issues that have been identified in relation to the possible harvesting rights concession. While the consideration process is at an advanced stage, no decision has been taken, as yet.

In relation to maintaining a sustainable forest strategy, in addition to the replanting policy, the Forest Service of my Department promotes afforestation, on an ongoing basis, as a viable land use for landowners through the provision of planting grants and payment of annual premiums. A total of €112 million in funding for capital and current expenditure was allocated for the overall forestry programme in 2013, to facilitate the payment for close to 7,000 hectares of new planting this year.

Photo of Joan CollinsJoan Collins (Dublin South Central, People Before Profit Alliance)
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203. To ask the Minister for Agriculture, Food and the Marine if he will outline in detail the groups he has consulted with, or intends to consult with in relation to the possible sale of the harvesting rights of Coillte; and if he will make a statement on the matter. [21890/13]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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Further to the Government decision that a concession for the harvesting rights to Coillte's forests be put forward for sale, NewERA, Coillte, the Department of Public Expenditure and Reform and my Department have worked to examine the financial and other implications of a potential transaction. Substantial work has been undertaken to date on the identification of the forestry assets involved, the determination of their value and the consideration of a number of issues associated with the proposed sale of the harvesting rights.

As part of that process, the Coillte State Assets Steering Group, which comprises of representatives from NewERA, the Department of Public Expenditure and Reform and my Department met with the Coillte Unions on 25 January 2013 and with the Chairman and other representatives of the Irish Timber Council on 13 March 2013. The Group are currently considering the reports submitted by both of those representative groups, namely the report by Peter Bacon and Associates, commissioned by IMPACT, containing an “Assessment of the Consequences of the proposed Sale of Coillte's Timber Harvesting Rights - 10 January 2013”, and “The impacts on the sawmill sector arising from the proposed sale of Coillte's harvesting rights - February 2013 ”, a report by EPS Consulting for the Irish Timber Council. I understand that members of the Steering Group have also met with relevant stakeholders with the objective of receiving their perspectives on the sale. I am regularly updated by the officials involved in the consideration process about the views expressed at such meetings.

In addition, I have received through my Department the views, including the concerns, of the general public, recreational groups, the timber processing sector, trade unions and members of the Oireachtas in relation to the Coillte sale proposal.

While the consideration process is at an advanced stage, no decision has been taken, as yet. The outcome of the overall analysis will be considered by the Government upon its completion.

Minister for Children and Youth Affairs (Deputy Frances Fitzgerald):

Photo of Joan CollinsJoan Collins (Dublin South Central, People Before Profit Alliance)
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204. To ask the Minister for Agriculture, Food and the Marine if there are any legal considerations, obstacles or obligations, particularly in relation to environmental impact assessments in his consideration of the possible sale of the harvesting rights of Coillte; and if he will make a statement on the matter. [21891/13]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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Further to the Government decision that a concession for the harvesting rights to Coillte's forests be considered for sale, NewERA, Coillte, the Department of Public Expenditure and Reform and my Department have worked to examine the financial and other implications of developing the potential of Coillte's forest assets. This process includes the consideration of the legal position with regard any potential sale of harvesting rights.

The process is at an advanced stage and, aside from the valuation of the forestry assets, a number of issues are being considered in relation to the possible harvesting rights concession. These include, inter alia, the possible impact on the timber industry, public access to recreational land, environmental and social impacts and consequential implications for the company. This whole process is a very complex one and it is not possible at this stage to pre-empt the outcome of the analysis. As I have said previously, the Government will proceed with caution in relation to this matter and no final decision has been taken, as yet. The outcome of the overall analysis will be considered by the Government upon its completion.

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